NSE lifts suspension on trading in shares of four companies

The Nigerian Stock Exchange (NSE) on Tuesday lifted the suspension it placed on trading in the shares of four listed companies after over a year.

This was contained in a notice to issuers on Tuesday by NSE Head of Listings Regulation Department, Godstime Iwenekhai.

Lifting of suspension placed on the shares of a company implies investors and shareholders of the company could resume trading in their equities.

The NSE had on July 5, 2017, August 2, 2017, and October 4, 2017 suspended trading in the shares of seventeen (17), one (1) and four (4) listed companies, respectively for noncompliance with Rule 3.1 of the rules for filing of accounts and treatment of default filing.

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The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four hours of the suspension.”

According to the notice, the NSE however said four (4) of the twenty-two (22) companies suspended on three different occasions last year submitted their respective financial statements.

The four companies include Premier Paints Plc., Ekocorp Plc., Austin Laz & Company Plc. and Academy Press Plc.

The exchange explained that the suspension was lifted in view of the submission of the companies’ respective accounts and pursuant to Rule 3.3 of the default filing rules.

The rule provides that, “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension.”

“The general public is hereby notified that the suspension placed on the trading of the company’s shares has been lifted effective today, 6 November 2018,” NSE stated in the notice.

 

 

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